Work out the payments and true cost of a business loan, with monthly, bi-weekly or weekly payments, fees, and factor rates turned into an APR you can compare.
$
% a year
The loan's interest rate, before fees
months
Monthly payment
$1,613.36
Total interest
$8,081
Total repaid
$58,081
Paid off
in 3 years
Origination fee
Extra payments
$
$
Month 1 to 36
Where your payments go: $58,081
Loan repaid: $50,000
Interest: $8,081
Amortization schedule
By loan year. Tap a year to see each payment.
Year
Principal
Interest
Balance
$15,037
$4,323
$34,963
$16,612
$2,749
$18,351
$18,351
$1,009
$0
An estimate for a fixed rate. Your lender's figures can differ slightly, for example if interest is charged daily or the first period is longer. Not financial advice.
How to use the business loan calculator
Enter the amount you need, the term in months and how often you'll pay.
Choose Interest rate for a term loan or line priced as a yearly rate, or Factor rate if the offer says something like 1.15 or 1.3.
Add any origination fee to see the APR, then compare offers by APR and total repaid.
Open the schedule to see each payment, or add extra payments to an interest-rate loan.
Interest rate vs factor rate: an example
A $50,000 term loan at 10% a year over 36 months costs $1,613.36 a month and $8,081 in interest (M = P × i ÷ (1 − (1 + i)−n), i = 10% ÷ 12). A $50,000 advance at a 1.2 factor, repaid weekly over 6 months, costs $10,000, less in money, but you have the money for a much shorter time: $2,307.69 a week is an APR of 72.83%.
Before you sign
Ask for the APR and the total amount repayable, including all fees.
Check whether you can repay early, and whether that saves anything.
Make sure weekly or daily payments fit your sales pattern, not just your monthly totals.
A way some short-term business finance is priced: you repay the amount times the factor, whatever happens. $50,000 at a 1.2 factor means repaying $60,000, a cost of $10,000. Unlike an interest rate, the factor doesn't say how long you have the money, so it can look cheaper than it is.
How do I convert a factor rate to an APR?
Find the yearly rate at which the payments are worth exactly what you received. $50,000 at a 1.2 factor repaid in 26 weekly payments of $2,307.69 works out at an APR of 72.83%. Over 52 weeks the same factor is 37.02%: the shorter the term, the higher the APR. Choose "Factor rate" above to try your own numbers.
How does an origination fee change the cost?
If the fee is taken from the loan you receive less but repay the full amount. $50,000 at 10% over 3 years is $1,613.36 a month; with a 3% ($1,500) fee the APR is 12.11% rather than 10%.
Weekly or monthly payments?
Some lenders collect weekly or daily. With interest charged on the balance, weekly payments of $371.30 on $50,000 at 10% over 3 years cost $7,922 in interest, against $8,081 paying monthly, because the balance falls a little sooner. Make sure the payments fit your cash flow.
Does paying a business loan off early save money?
With an interest-rate loan, usually: interest is charged on the balance, so extra payments cut it (check for a prepayment fee). With a factor-rate loan the cost is usually fixed when you sign, so paying early may save nothing unless the agreement offers a discount.